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TMI Blog2021 (2) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... nflating their value with an intent to illegally claim IGST and Tobacco Cess, etc. initiated an investigation. The customs authorities seized the alleged offending goods. In the process of investigation, the impugned order dated June 24, 2020 was passed by the respondent No. 2. The order is an exercise of powers under Section 110(2) of the Act of 1962. The provision of Section 110(2) of the Act of 1962 was considered by the Supreme Court in Charan Das Malhotra [1971 (2) TMI 41 - SUPREME COURT] where the Supreme Court laid down that, the power under the proviso of Section 110(2) of the Act of 1962 is quasi-judicial and at any rate one requiring a judicial approach. It laid down that extension order is not required to be passed mechanically. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irement to take judicial approach while exercising powers under Section 110(2) of the Act of 1962. Thus, no doubt the authorities complied with the first proviso to Section 110(2) of the Act of 1962. However, in exercise of powers under Section 110(2) of the Act of 1962 as amended the authorities overlooked the fact that they were acting in a quasi-judicial manner and they were required to take a judicial approach and not otherwise. The authorities were required to give an opportunity of hearing to the person from whom the goods were seized before exercising power under Section 110(2) of the Act of 1962 which they did not do while issuing the impugned order - Simply on the ground of breach of principles of natural justice, the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 689 = 1983 (13) E.L.T. 1477 (S.C.) [The Assistant Collector of Customs and Superintendent, Preventive Service Customs, Calcutta Ors. v. Charan Das Malhotra] and AIR 1989 Supreme Court 1884 = 1989 (42) E.L.T. 338 (S.C.) [I.J. Rao, Assistant Collector of Customs Ors. v. Bibhuti Bhushan Bagh Anr.] in support of the contention that the power under the first proviso under Section 110(2) of the Act of 1962 is quasi-judicial in nature and requires a judicial approach. He points out that the first proviso under Section 110(2) of the Act of 1962 underwent an amendment. According to him, the essential requirement of the exercise of power under Section 110(2) of the Act introduced in 2018 protects the character of quasi-judicial proceeding and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eized the alleged offending goods. In the process of investigation, the impugned order dated June 24, 2020 was passed by the respondent No. 2. The order is an exercise of powers under Section 110(2) of the Act of 1962. 7. The provision of Section 110(2) of the Act of 1962 was considered by the Supreme Court in Charan Das Malhotra (supra) and Bibhuti Bhushan Bagh (supra). 8. In Charan Das Malhotra (supra), the Supreme Court laid down that, the power under the proviso of Section 110(2) of the Act of 1962 is quasi-judicial and at any rate one requiring a judicial approach. It laid down that extension order is not required to be passed mechanically. Moreover, the power under sub-section (1) cannot be equated with the power under the proviso to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere to the principles of natural justice while exercising powers under Section 110(2) of the Act of 1962. The amendment introduced to the first proviso incorporates two additional burdens on the authorities. One of such additional burden is that the authorities are required to record reasons for the extension of time and the other burden is to inform the person from whom the goods were seized before the expiry of the period specified. The amendment does not obviate the requirement of adherence to the principles of natural justice while powers under Section 110(2) of the Act of 1962 are exercised. The amendment introduced also does not take away the character of quasi-judicial powers exercised and the requirement to take judicial approach wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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